Carillion staff transferred to NHS as PFI provider collapses

Tees, Esk and Wear Valleys Foundation Trust has offered 23 ex-Carillion workers at Roseberry Park Hospital the opportunity to transfer to its new subsidiary company after deciding “urgent action” was needed to maintain service delivery.

It comes a week after the trust’s Private Finance Initiative provider, Three Valleys Healthcare Limited, went into administration.

Last year, the trust began proceedings to terminate its PFI contract with TVH after years of problems with building defects and fire safety at the 365-bed hospital in Middlesbrough.

TVH rejected the termination and a legal battle is currently ongoing.

The company was hit by the demise of Carillion, which was contracted to provide maintenance of the hospital’s estate including the grounds and garden, as well as security, parking, and catering services.

As reported by HSJ, the trust set up a subsidiary company (TEWV Estates and Facilities Management Limited) to address the risks caused by Carillion’s liquidation, into which the affected staff have been offered to move.

In a statement, the trust said the “need to take urgent action came to the forefront” when TVH went into administration.

Colin Martin, chief executive of the trust, said: “We have taken this course of action in order to ensure the best possible delivery of estates and facilities services at Roseberry Park Hospital.”

The hospital cost £75m to build. Under the contract, the trust will pay around £321m to the company over the years until 2039-40.

TVH’s only shareholder is Three Valleys Healthcare Holdings Limited, which is also in administration.

Three Valleys Healthcare Holdings is owned by John Laing Infrastructure Fund.

The hospital was built by Laing O’Rourke and opened in 2010.

Several other trusts are yet to formally complete their transfer of ex-Carillion staff to new providers.